Posted by MarkB_MI on December 01, 2010 at 03:31:26 from (166.203.56.102):
In Reply to: OT sell-out posted by patsublett on November 30, 2010 at 10:51:15:
In case you haven't noticed, we've been running a huge trade deficit with China for many years. All those dollars are stacking up in China and they have to do something with them. If they don't somehow make their way back to the US, we'll have to stop buying Chinese goods. One way would be for China to import more US products; however, we don't make much that they want to buy (outside of agricultural commodities). So instead, China is investing in US companies. In this particular case, the Chinese company is taking a risk, figuring that natural gas demand will go up and make it profitable. Also, this helps them hedge against rising energy costs, since profits from the US company will offset increased costs in China.
The Chinese have been making strategic investments around the world to secure sources of energy and raw materials. Africa, in particular, has received huge amounts of Chinese investment.
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